Are Retailers Doing Enough To Serve the Needs and Desires of Shoppers Facing Disabilities?

Retailers have, over the years, improved their operations to make things easier (and more attractive) for U.S. consumers facing disabilities to shop with them. Historically speaking, as Fable noted, in 1984 Jane Snowball — an elderly woman with mobility concerns — was able to place the first-ever online order, including eggs, corn flakes, and margarine.

Now, in a recent research paper produced by Disability:IN in conjunction with the American Institutes for Research (AIR), the topic of how retailers might better serve the needs and desires of American consumers with disabilities was thoroughly examined. For starters, the reports author’s suggested that the disability consumer market is currently worth an estimated $675 billion — a significant uptick from the $490 billion in valuation less than a decade ago, in 2018.

“People with disabilities represent a powerful segment of the marketplace, with significant opportunity for business performance,” AIR’s Kathleen Murphy, lead author and Managing Researcher, said in a press release.

“In many states, a significant share of this population has discretionary income, giving companies a clear path to expand their reach, capture new demand, and drive sustained growth,” she added.

There were several top-line results highlighted, including:

• Disposable income for Americans with disabilities hits $40,000 annually: The average disposable income for U.S. shoppers facing disabilities was registered at an estimated $40,000 annually, as compared to $68,000 for consumers without a disability. However, the report authors argue that Americans with disabilities are making strides in the labor market, and that increased purchasing power will result.
• Discretionary income (not disposable) totals $107 billion annually for disabled Americans, particularly a certain subset: Americans with disabilities hold a collective $107 billion in annual discretionary income — differentiated from disposable income as the portion of cash left over following taxes, necessary expenses, food, housing, and utilities were covered off. The top 10% of working-age disabled Americans represent the bulk of this, with this cohort holding about $40,000 in discretionary spending power on a yearly basis.
• However, there’s still a gap to close in terms of equity or social justice concerns: “Only 1 in 10 working age adults with disabilities have discretionary income after taxes and essentials. By comparison, 1 in 4 working age adults without disabilities have discretionary income,” the report’s authors underscored.

How Might Retailers Improve Their Product Development and Broader Market Strategy To Attract the Attention of Americans With Disabilities?

Describing the disability consumer market as underserved, the study authors suggested a variety of capitalization strategies that would be reciprocally beneficial for brands and retailers as well as disabled U.S. consumers.

The first thrust spoke to developing products aimed at the disability community that actually produced broader market interest, with this method being labelled “proven” and examples given: audiobooks, electric toothbrushes, TV closed-captioning, and voice command or dictation integration.

The second zeroed in on leaning into accessible everyday products that would be part of an overall inclusivity strategy — a go-to-market play that included both disabled consumers and those without disabilities with the aim of becoming a “brand of choice” across both demographics.

“This report further validates a massive and growing market driven by people with disabilities, and the important and powerful role they play in consumer spending, despite consistently being overlooked. Investors, particularly those in venture capital, have been slow to recognize the incredible financial opportunity and overall positive economic and social impacts of investing in this space,” said Brittany Palmer, managing partner with Adaptation Ventures.

“That landscape is beginning to change as the products being developed not only show wide adoption by people with disabilities, but they have applicability to broader markets, a common phenomenon often referred to as the curb cut effect,” she added.